The U.S. housing market is gearing up for a record-breaking year in 2025. Over 500,000 new apartments are expected to be completed across the nation. At the forefront, NYC is set to deliver nearly 35,000 new units , more than any other metro in the United States. This marks the highest level of apartment construction since 2008, bringing relief to cities facing housing shortages.
This construction surge reflects a response to high demand for rentals, driven by economic recovery and rising homeownership costs.
Explore RealPage’s analysis of the U.S. apartment market in 2025 here.
A Record Year for Apartment Construction
In 2025, developers will deliver more than half a million apartments nationwide, according to RealPage. This boom is fueled by several key factors. Anticipated Federal Reserve rate cuts may encourage real estate investments. Meanwhile, elevated home prices and mortgage rates are forcing prospective buyers into the rental market.
Major cities and growing metros will both play significant roles in this expansion. The new inventory comes at a crucial time when housing demand shows no signs of cooling.
NYC New Apartments in 2025: A National Leader
New York City will lead the nation in housing construction with the addition of 35,000 new apartments . This represents a 1.8% growth rate for the city, which traditionally faces housing challenges. While NYC’s growth is relatively modest, its raw delivery volume highlights its importance in meeting U.S. rental demands.
Other markets will also experience substantial expansion. Phoenix, AZ , expects 29,600 new units at a 7% growth rate, while Los Angeles, CA , will deliver 19,400 apartments—a milestone for the city. These metros reflect the varied efforts underway to stabilize housing markets.
Learn more about the effects of Federal Reserve rate cuts on housing growth here.
Regional Trends: Where Construction Thrives
1. The Sun Belt Shines Bright
The Sun Belt continues to dominate the U.S. housing market. Texas metros such as Dallas, Austin, and Houston will deliver between 14,000 and 27,000 units each in 2025. This steady activity is driven by strong job markets, population growth, and relative affordability. Southern metros like Atlanta, Charlotte, and Orlando also stand out in this wave of development.
The trend reflects a pattern of migration to warm regions with better job prospects and lower living costs. See the U.S. Census Bureau’s report on Sun Belt population growth here.
2. Smaller Cities, Big Growth
Smaller markets are showcasing record-breaking growth rates. Asheville, NC , leads the nation with a 13.3% increase in rental inventory, which translates to 3,500 new apartments. Wilmington, NC , and Huntsville, AL , will also grow their rental supplies by over 7%. These markets attract renters with affordable housing and high quality of life.
3. Recoveries in the West
Western cities such as Seattle, WA , and Denver, CO , are rebounding strongly. Both metros will add thousands of apartments in 2025, signaling a recovery in their multifamily development sectors. Developers appear optimistic about these markets due to their resilient economies and stable rent trends.
Why 2025 Is a Turning Point
Three major factors are driving this wave of housing construction:
- Economic Recovery: Projected Federal Reserve rate cuts are expected to free up real estate financing, spurring new development.
- High Homeownership Costs: Escalating mortgage rates have priced many Americans out of buying homes, increasing rental demand.
- Stabilizing Rental Prices: After years of volatility, rents in many cities are starting to level off. This provides a favorable environment for both developers and renters.
What This Means for Renters
The 35,000 new apartments slated for completion in NYC by 2025 offer a significant opportunity to address housing challenges. For years, renters in New York have faced high costs and stiff competition for limited inventory. These new units will bring much-needed options to one of the nation’s most constrained markets.
In addition, other major metros like Phoenix and Los Angeles are making substantial contributions to rental supply. Smaller cities like Asheville and Huntsville offer affordable alternatives for renters seeking lower-cost options outside traditional tech and financial hubs. Meanwhile, the recovery in Western cities such as Seattle further diversifies the availability of rental housing nationwide.
This blended wave of housing growth—stretching from major metros to smaller secondary cities—is expected to rebalance some of the most supply-constrained markets.
NYC New Apartments in 2025: A Historic Moment
The U.S. rental market will experience a pivotal year in 2025 with the arrival of over 500,000 new apartments nationwide. NYC will lead this effort with the delivery of 35,000 units, marking its critical contribution to the national housing landscape.
While cities like Phoenix and Los Angeles offer robust inventory additions, the Sun Belt and smaller-tier markets are setting remarkable growth rates. Altogether, the housing boom of 2025 aims to create a more balanced market, delivering options to renters across regions and at varying affordability levels. Developers, renters, and cities stand on the brink of relief after years of constrained supply.
